A recent study by Clarify Capital has identified the best states in the U.S. for women entrepreneurs. According to the study, California, New York, Florida, Texas, and Colorado emerge as the top destinations for women-owned businesses, providing a robust ecosystem for female entrepreneurs.
Florida and Texas Lead in Large-Scale Women-Owned Enterprises
Florida stands out with the highest concentration of women-owned businesses employing 500 or more employees, closely followed by Texas. This indicates a thriving environment for women-led enterprises in Florida, which offers ample opportunities for business growth and expansion. The robust ecosystem in Texas is also notable, with a significant number of large-scale enterprises founded by women.
“These states have created environments rich in opportunities for women who are starting and scaling businesses,” said Michael Baynes, co-founder and CEO of Clarify Capital. “Especially noteworthy is Florida, which leads with the highest percentage of women-owned businesses, while Texas excels with a notable number of large-scale enterprises founded by women.”
Colorado and New York: Fostering Gender Pay Equity and Business Growth
Colorado and New York have made significant strides in supporting women entrepreneurs through different means. Colorado is recognized for its high ratio of women-owned businesses per capita, creating a conducive environment for new ventures. Meanwhile, New York shines in promoting gender pay equity, reinforcing its position as a supportive hub for women in business.
New York-Newark-Jersey City leads as the top metropolitan area for women-owned businesses, featuring the highest density of female-owned small businesses per 10,000 residents. This metro area also excels in larger-scale enterprises, securing top ranks for both the number of women-led businesses with 500 employees or more and those generating revenue exceeding $1 million. Following closely is Los Angeles-Long Beach-Anaheim, which ranked second in these same categories. Other leading metro areas include Chicago-Naperville-Elgin, Dallas-Fort Worth-Arlington, and Washington-Arlington-Alexandria.
“These metropolitan areas nurture a high density of female-owned businesses but also support those that achieve substantial revenue and employment figures, making them central hubs for women’s entrepreneurial success,” said Baynes.
Notable Trends and Insights from the Clarify Capital Report
The Clarify Capital report also highlights key trends in women entrepreneurship across the U.S. North Dakota has experienced the largest increase, with a 444% rise in women-owned businesses over the past three years, while Maine saw the largest decrease at -59%. Montana leads the nation with the most female-owned businesses per 10,000 residents, and the New York-Newark-Jersey City metro area boasts the highest density of women-owned firms per capita among major metro areas.
Florida is recognized as the state with the highest percentage of female-owned businesses, while New Bern, North Carolina takes the top honor among metro areas. North Dakota and the Fargo, North Dakota-Minnesota metro area report the lowest female unemployment rates, whereas Vermont and the Walla Walla, Washington metro area have the highest women’s-to-men’s pay ratios.
Venture Capital Investment in Women-Led Ventures
One of the ongoing challenges for women entrepreneurs is obtaining capital for their growing enterprises. Clarify Capital analyzed data from Pitchbook and the U.S. Census Bureau to identify where female-founded businesses receive the most venture capital money. Massachusetts leads the 50 states with an average of $13 million per deal, outpacing second-place California by 21%. Other top states include Nebraska, New York, and New Jersey.
“Our findings on investment trends indicate a robust investment climate for women entrepreneurs in certain states. This suggests a promising stage for growth and innovation in women-led ventures in these areas of the country,” said Baynes.
